Employee mobility brings important skills, knowledge and capabilities to hiring firms. But that is only half of the story. Employees carry important relationships with them – for example with clients, suppliers or other colleagues – that can be beneficial for the organisation. This so-called social capital is an important motivation when poaching talent from competitors as firms try to tap disparate networks and benefit from forging new connections.

Social capital is especially important for industries where observing product quality is challenging, like in professional services firms. In these cases, clients often forge lasting relationships with specific employees and follow them across different employers. It is no surprise then that firms vie for talent and employee poaching is a frequently used tool to get new clients.

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